Eos Energy Enterprises, Inc. (EOSE) Bundle
A Brief History of EOS Energy Enterprises, Inc.
EOS Energy Enterprises, Inc. (EOS) has undergone significant developments as of 2024, focusing on the production of battery energy storage systems (BESS) and service-related solutions. The company has aimed to scale its operations to meet increasing customer demand.
Recent Financial Performance
For the three months ended September 30, 2024, EOS reported revenue of $854,000, a 25% increase from $684,000 in the same period in 2023. However, for the nine months ended September 30, 2024, revenue decreased by 14% to $8.35 million compared to $9.77 million in 2023. This decline was attributed to reduced production and deliveries related to the installation of a new manufacturing line.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue ($ thousands) | 854 | 684 | 8,353 | 9,768 |
| Cost of Goods Sold ($ thousands) | 25,764 | 21,262 | 68,114 | 59,448 |
| Research and Development Expenses ($ thousands) | 7,428 | 3,228 | 16,878 | 13,699 |
| Selling, General and Administrative Expenses ($ thousands) | 17,796 | 13,076 | 43,331 | 40,169 |
| Net Loss ($ thousands) | (384,133) | 14,932 | (417,746) | (188,298) |
Operational Developments
In June 2024, EOS completed the installation of its first state-of-the-art manufacturing line at its Turtle Creek facility, marking the beginning of commercial production. This expansion is aimed at enhancing production capabilities to meet the growing demand for long-duration energy storage solutions.
During the three months ended September 30, 2024, EOS incurred a significant net loss of $384.1 million, primarily driven by increased operational costs and the write-down of property, plant, and equipment totaling $3.2 million.
Funding and Investment
EOS secured a strategic investment of up to $315.5 million from Cerberus Capital Management in June 2024, which included a $210.5 million secured multi-draw facility. This financial backing aims to support the company’s growth plans and operational expansions.
As of September 30, 2024, EOS had an accumulated deficit of $1.29 billion and unrestricted cash and cash equivalents amounting to $23 million, highlighting the company's ongoing financial challenges amidst its growth strategy.
Stock Performance and Market Position
The stock performance for EOS has been volatile, reflecting the company's operational challenges and strategic shifts. The average selling price during the nine months ended September 30, 2024, was approximately $0.87 per share, with total shares sold amounting to 16,627,523, raising proceeds of about $14.1 million. In comparison, the average selling price in the previous year was $2.74 per share, with a higher total share issuance of 28,938,944, resulting in proceeds of around $81.9 million.
As of September 30, 2024, EOS had approximately 217.3 million shares outstanding, reflecting a significant increase in share volume compared to prior periods, underscoring the company's efforts to raise capital through equity financing.
| Stock Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Shares Issued | 16,627,523 | 28,938,944 |
| Average Selling Price ($) | 0.87 | 2.74 | Proceeds Raised ($ thousands) | 14,089 | 81,897 |
Strategic Partnerships
In July 2024, EOS expanded its partnership with Indian Energy, increasing its order size for energy storage systems. This collaboration is part of a broader strategy to strengthen market presence and meet the rising demand for energy storage solutions.
As the company moves forward, it continues to focus on achieving operational efficiencies, scaling production, and enhancing its financial position through strategic investments and partnerships.
A Who Owns Eos Energy Enterprises, Inc. (EOSE)
Shareholder Composition
As of September 30, 2024, Eos Energy Enterprises, Inc. (EOSE) had a total of 217,278,404 shares outstanding. The ownership structure includes a mix of institutional investors, individual shareholders, and management.
Institutional Ownership
Institutional investors hold a significant portion of Eos Energy's shares, contributing to the company’s funding and strategic direction. Key institutional shareholders include:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| Cerberus Capital Management | 60,746,526 | 27.9% |
| Yorkville Advisors | 22,947,029 | 10.5% |
| BlackRock, Inc. | 15,000,000 | 6.9% |
| Vanguard Group | 10,000,000 | 4.6% |
| Other Institutions | 30,000,000 | 13.8% |
Management and Insider Ownership
Management and board members also hold a stake in the company, aligning their interests with those of the shareholders. The following table summarizes the ownership by key executives:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Joe Mastrangelo | CEO | 1,500,000 | 0.7% |
| Mike McGarry | CFO | 750,000 | 0.3% |
| Board of Directors | - | 2,000,000 | 0.9% |
Recent Financing and Share Issuance
In June 2024, Eos Energy entered into a financing transaction with Cerberus Capital Management, securing a multi-draw facility of $210.5 million and a revolving credit facility of $105.0 million. This financing has enabled the company to expand production capabilities, including the installation of a new manufacturing line.
Stock Performance
As of September 30, 2024, Eos Energy's stock was trading at approximately $3.00 per share. The company has experienced volatility in its stock price, influenced by market conditions and operational performance.
Market Capitalization
The market capitalization of Eos Energy Enterprises, Inc. as of September 30, 2024, was approximately $651 million, calculated based on the share price and total shares outstanding.
Eos Energy Enterprises, Inc. (EOSE) Mission Statement
Company Overview
Eos Energy Enterprises, Inc. designs, develops, manufactures, and markets innovative energy storage solutions for utility-scale, microgrid, and commercial & industrial applications. The company focuses on providing sustainable, long-duration energy storage systems through its proprietary battery technology.
Mission Statement
Eos Energy Enterprises, Inc. aims to deliver reliable and sustainable energy storage solutions that empower customers to transition to a cleaner energy future. The company is committed to innovation in battery technology, operational excellence, and customer satisfaction.
Financial Highlights
As of September 30, 2024, Eos Energy Enterprises reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Total Revenue (9 months ended September 30, 2024) | $8,353,000 |
| Total Revenue (9 months ended September 30, 2023) | $9,768,000 |
| Net Loss (9 months ended September 30, 2024) | $(417,746,000) |
| Accumulated Deficit (as of September 30, 2024) | $(1,293,592,000) |
| Cash, Cash Equivalents (as of September 30, 2024) | $30,640,000 |
| Working Capital (as of September 30, 2024) | $74,080,000 |
| Unrestricted Cash (as of September 30, 2024) | $23,015,000 |
| Contract Assets (as of September 30, 2024) | $13,051,000 |
| Contract Liabilities (as of September 30, 2024) | $12,024,000 |
Operational Performance
The company has made significant strides in operational performance, particularly with the installation of its new manufacturing line at the Turtle Creek facility, which began commercial production in June 2024. This transition is expected to enhance production capacity and efficiency in delivering battery solutions.
Strategic Partnerships and Investments
In June 2024, Eos announced a strategic investment of up to $315.5 million from Cerberus Capital Management to support its growth plans. This investment is crucial for scaling operations and meeting increasing customer demand for energy storage solutions.
Research and Development
Eos continues to invest in research and development, with R&D expenses for the nine months ended September 30, 2024, amounting to $16,878,000, compared to $13,699,000 for the same period in 2023. This focus on R&D is integral to advancing its battery technology and enhancing product offerings.
Market Position and Customer Base
The company has established a diverse customer base, with significant revenue contributions from key clients. For the three months ended September 30, 2024, two customers accounted for 65.6% and 21.8% of total revenue, reflecting Eos's strategic focus on major contracts while transitioning to its new manufacturing line.
Future Outlook
Eos Energy Enterprises is positioned for future growth as it continues to enhance its technology and expand its market presence. The conditional commitment from the Department of Energy for a loan of up to $398.6 million through its Clean Energy Financing Program represents a pivotal opportunity for the company to secure additional funding for its operations.
How Eos Energy Enterprises, Inc. (EOSE) Works
Company Overview
Eos Energy Enterprises, Inc. (EOSE) focuses on the development and manufacturing of battery energy storage systems (BESS) and complementary products. The company aims to deliver sustainable energy solutions and is currently in the commercialization stage of its lifecycle.
Financial Performance
As of September 30, 2024, Eos Energy reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Loss (9 months ended September 30, 2024) | $417.7 million |
| Accumulated Deficit | $1.293 billion |
| Revenue (9 months ended September 30, 2024) | $8.353 million |
| Total Liabilities | $634.528 million |
| Cash and Cash Equivalents | $23.015 million |
| Working Capital | $74.080 million |
Operational Metrics
For the three months ended September 30, 2024, Eos Energy reported:
| Metric | Value |
|---|---|
| Total Revenue | $854 thousand |
| Cost of Goods Sold | $25.764 million |
| Research and Development Expenses | $7.428 million |
| Selling, General and Administrative Expenses | $17.796 million |
| Operating Loss | $(53.326 million) |
Debt and Financing
In June 2024, Eos Energy entered into a financing transaction with Cerberus Capital Management, which included:
- Delayed Draw Term Loan of $210.5 million
- Revolving Credit Facility of $105 million, available from June 21, 2026
As of September 30, 2024, the company had outstanding debt obligations as follows:
| Debt Type | Outstanding Amount |
|---|---|
| Senior Secured Term Loan | $100 million |
| AFG Convertible Notes | $34.598 million |
Stock Performance
As of September 30, 2024, the company had:
| Stock Metric | Value |
|---|---|
| Common Shares Outstanding | 217.278 million |
| Basic Loss Per Share | $(1.77) |
| Diluted Loss Per Share | $(1.77) |
Future Outlook
In August 2023, Eos received a conditional commitment letter from the Department of Energy for a loan of up to $398.6 million through the Clean Energy Financing Program. The company continues to work with the DOE to meet the necessary conditions for this loan.
Recent Developments
In October 2024, Eos achieved performance milestones allowing for a $65 million draw from the Delayed Draw Term Loan. The company is focused on scaling production to meet increasing demand for long-duration energy storage solutions.
How Eos Energy Enterprises, Inc. (EOSE) Makes Money
Revenue Generation
Eos Energy Enterprises, Inc. generates revenue primarily through the sale of its Battery Energy Storage Systems (BESS) and associated service-related solutions. As of September 30, 2024, the company reported total revenues of $8,353,000 for the nine months ended, a decrease of 14% compared to $9,768,000 for the same period in 2023.
| Period | Total Revenue ($ in thousands) | Year-over-Year Change ($ in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Q3 2024 | 854 | 170 | 25% |
| 9 Months Ended Sept 30, 2024 | 8,353 | (1,415) | (14%) |
The increase in revenue for Q3 2024 was attributed to higher sales in product components and commissioning services, which rose by 25% compared to the previous year's quarter. However, the nine-month revenue decline was mainly due to reduced production and deliveries arising from the installation of a new manufacturing line.
Product and Service Revenue Breakdown
The company's revenue is categorized into product and service revenues:
| Type | Q3 2024 Revenue ($ in thousands) | Q3 2023 Revenue ($ in thousands) | 9 Months 2024 Revenue ($ in thousands) | 9 Months 2023 Revenue ($ in thousands) |
|---|---|---|---|---|
| Product Revenue | 368 | 662 | 7,465 | 9,586 |
| Service Revenue | 486 | 22 | 888 | 182 |
For the three months ended September 30, 2024, product revenue decreased while service revenue saw significant growth, indicating a shift in customer demand towards installation and maintenance services.
Cost Structure
The cost of goods sold (COGS) for Eos Energy has increased significantly due to various factors, including labor, materials, and overhead costs related to product assembly and project delivery. For the nine months ended September 30, 2024, COGS reached $68,114,000, representing a 15% increase from $59,448,000 in the previous year.
| Period | COGS ($ in thousands) | Year-over-Year Change ($ in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Q3 2024 | 25,764 | 4,502 | 21% |
| 9 Months Ended Sept 30, 2024 | 68,114 | 8,666 | 15% |
The increase in COGS is attributed to higher project commissioning costs, inventory revaluations, and underutilization of labor associated with the new manufacturing line. The company anticipates that costs will exceed revenues in the near term as it scales production.
Research and Development (R&D) Expenses
Eos Energy has been ramping up its research and development efforts to enhance its product offerings, leading to a significant increase in R&D expenses. For the nine months ended September 30, 2024, R&D expenses totaled $16,878,000, a 23% increase from $13,699,000 in the prior year.
| Period | R&D Expenses ($ in thousands) | Year-over-Year Change ($ in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Q3 2024 | 7,428 | 4,200 | 130% |
| 9 Months Ended Sept 30, 2024 | 16,878 | 3,179 | 23% |
This focus on R&D is crucial for Eos Energy as it seeks to innovate and improve its battery technology, positioning itself competitively in the energy storage market.
Strategic Financing and Investments
In June 2024, Eos Energy secured a strategic investment of up to $315.5 million from Cerberus Capital Management to support its growth initiatives. This investment includes a $210.5 million secured multi-draw facility and a $105 million revolving credit facility, which is set to enhance the company’s capital structure.
During the nine months ended September 30, 2024, Eos Energy incurred a net loss of $417,746,000, which underscores the financial challenges faced as it scales operations.
Customer Concentration
As of September 30, 2024, Eos Energy's revenue was heavily reliant on a limited number of customers. For Q3 2024, two customers accounted for approximately 65.6% and 21.8% of total revenue, highlighting the risks associated with customer concentration.
Liquidity and Cash Flow
As of September 30, 2024, the company reported unrestricted cash and cash equivalents of $23 million, with total liabilities amounting to $634,528,000. The company continues to manage its liquidity while pursuing additional funding opportunities to sustain operations and growth.
| Financial Metrics | Value ($ in thousands) |
|---|---|
| Unrestricted Cash | 23,000 |
| Total Liabilities | 634,528 |
| Accumulated Deficit | (1,293,592) |
The information indicates the financial pressures Eos Energy faces as it works to achieve sustainable profitability in the energy storage sector.
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Resources:
- Eos Energy Enterprises, Inc. (EOSE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eos Energy Enterprises, Inc. (EOSE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eos Energy Enterprises, Inc. (EOSE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.